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If you plan to buy a plot of land for sale in Cameroon, read this comprehensive guide to understand the intrigues of getting the appropriate deals. Numerous pieces of land are available in Buea, Limbe, Douala, Yaounde, Bamenda, Kribi, etc. Temo Group Real Estate Agency in Cameroon can provide you a hassle-free experience on your land purchases.
A successful negotiation occurs when both the buyer and seller believe they have received a reasonable price. Here are the things to consider before purchasing a piece of land in Cameroon:
- Make a Fair Offer
- Do a cost analysis for the land purchase
- Easements
- Deed restrictions
Make a Fair Offer
There may be some back and forth with the seller. You may offer a lower amount than the asking price, and the seller will counter with an offer higher than yours. The key is to head to the negotiations table with your well-conducted research in hand.
If you educate yourself about the market, you can determine if an offer is a good deal or not. Do not waste time playing games or questioning the seller’s integrity. You will not get taken for a ride.
Decide what a transaction is worth to you. No property is worth paying more than you can afford. Settle on a price that is acceptable to both parties. But do not exceed the price you initially set as your maximum amount to pay.
A property may be worth more value to you than the actual appraisal. Take the emotion out of it and deal with it in terms of money and sense; also, don’t be afraid to walk away from a deal; just do so with a handshake and a smile, and do not burn that bridge.
2. Do a Cost analysis For the Land Purchase
Calculate all costs to bring the land up to your desired condition. What is it going to cost you to build out the property? That is the cost of acquiring the land, the entitlement, the cost of construction of the land, the cost of marketing to people to build it up if it is a retail space, plus the cost it takes to secure any money (i.e., real estate loans).
Calculate the most you are willing to pay the seller based on the outcome of your cost analysis. He says that you still need a contingency once you have done all of the research and appropriate planning. You can think you have it nailed down, and suddenly, something crops up, unsettling your plans.
Consider how zoning will impact the value. Local zoning laws can have a massive impact on the value of a piece of land. The land is generally more valuable when you can develop it.
However, zoning laws can restrict how the land can be developed. For example, some land can be developed for commercial or residential purposes only. Others allow mixed development.
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If your comparable properties allow commercial development, they might be more valuable. You will need to lower your estimate if the land is only zoned for residential development.
Create an estimate based on your comps. You are unlikely to find a recently sold property that matches yours exactly. Instead, they will differ in size, location, etc. Nevertheless, this is the best information you have about market conditions.
If you cannot find a comparable piece of land, then go further back in time to find something similar.
Adjust your estimate based on the details of the land. For example, you might have found a plot that is a similar size in the same area. However, the property you want is on a steep incline and doesn’t have a great view. You should estimate that this plot will sell for much less than its comp.
Find out how much comparable land has been sold for. You might need a realtor or a land surveyor to determine the price paid for a similar property. If none of your comps have sold, look at the asking price. In many areas, you can look up the most recent price for which a property was sold on the local assessor’s office website.
Adjust the value based on deed restrictions.
3. Easements
An easement is a legal right to use the property. For example, a neighbor might have a right-of-way over the property. This can decrease the value of the land.
4. Deed restrictions
There may be restrictions on how the land can be developed, including zoning restrictions. The deed might have a regulation that makes development impractical.
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Conclusion
Analyze how desirable the land is. Imagine you are creating your property listing on a real estate website. Take pictures of the land and assess how good it is. Is it simply a vacant lot in a rundown part of town? Or is it a gorgeous grass field with a view of the sea or ocean?
The more desirable the land, the more likely you can get a higher price.
This is a subjective assessment, but it nevertheless is essential. If your land is more desirable than your comps, raise your estimate.
Read Also: The Complete Guide to Real Estate Business in Cameroon.
